Daily Archives: January 28, 2009

Victory: Cabot Bans Growth Hormone!

(Cross-posted at Broadsides.org)

Yes, the news is true. And, yes, my tongue is firmly in my cheek.

For those who don’t know and/or forgot (like I almost did), Food & Water – under the direction of yours truly – launched a campaign against Vermont’s own Cabot Creamery in 1995 when we learned that they were about to allow their farmers to use the Monsanto corporations synthetic bovine growth hormone (rBGH), Posilac. And, last week, Cabot announced that it was, indeed, going to be “listening to its customers” and banning the use of the cow drug by August of this year. Like I said: Victory! Yeah right.

There was one grammatical error in Cabot’s announcement however: They said they were listening to their “customers.” But what they should have said was “customer.” Because Cabot’s nearly-fifteen years of flinging their noses at their real customers who were demanding an end to its rBGH use was really stopped by one, single “customer”: Wal-Mart. Yep, it was the mega-retailer who let Cabot know that they were looking for hormone-free dairy products. And when Wal-Mart said, “jump,” Cabot said, “how high?” – especially when, according to dairy industry insiders, Wal-Mart is now responsible for nearly 25% of Cabot’s sales.

But, for the sheer fun of it, let’s step back and look at how Food & Water secured this “victory.” In the spring of 1995 as Food & Water was preparing to unveil a similar anti-rBGH campaign against Land 0’Lakes, an employee of Cabot Creamery approached me with the news that he had obtained an internal memo from Cabot’s headquarters that he was certain I would be interested in. The Cabot employee was right: The memo acknowledged that Cabot farmers were not only being allowed to use rBGH but that its use was well underway. And this was a time when Cabot was publicly declaring a “wait and see” attitude about Monsanto’s cow drug.

After confirming the authenticity of the memo and a few phone calls with Cabot’s executives, a campaign was born. As we said at the time, we weren’t about to go after the Minnesota-based Land O’Lakes for its use of rBGH and then ignore the same consumer and animal welfare transgressions by our neighbors, Cabot Creamery (at the time, Food & Water was headquartered in Walden, Vermont, a mere five miles up the road from Cabot).

The campaign generated enormous attention both here in Vermont and throughout the United States. While most anti-rBGH activists at the time were focused on lobbying the Food & Drug Administration or Congress, Food & Water saw the writing on the wall and, instead, directed our campaigns at the corporations seeking to use the product. I wrote an article at the time, in fact, that described the legislators and regulators as the mere “puppets” in the battle, while the Monsantos and the food corporations like Cabot were the “puppeteers.” And so we aimed directly at the folks holding the strings.

It got mighty heated, too. While our campaign generated thousands of letters, postcards and phone calls to Cabot’s offices demanding that they reverse their decision based on human health and animal welfare considerations, Cabot dug in their heels and called in their favors from Vermont’s political, media and economic elite to help them fight off the big, bad Food & Water.

The facts regarding rBGH’s link to cancer and its known contribution to animal disease and even death were mostly discarded by the rescue squad called in by Cabot to fend us off. Governor Howard Dean held a press conference to condemn us. Newspapers editorialized about our “tactics” being suspect (boycotts?). And even our peers in the consumer and environmental movement (yes, VPIRG and Rural Vermont) came to Cabot’s defense, urging us to take our campaign someplace else. Chickens. But, then again, they’re still operating at full-strength…

After hearing about Cabot’s fifteen-year change of rBGH policy, I wandered out to my barn to peruse my old Food & Water archives (stored in a horse stall, where the horses have dutifully defecated on them and found a real use for them: scratching posts). Oh boy, let the memories flow.

Here are some of my favorite moments while walking down the Cabot campaign memory lane this morning:

• After Food & Water unveiled a radio commercial targeting Cabot’s use of rBGH, Governor Howard Dean held a press conference condemning Food & Water, calling us a “terrorist group” and, while holding up a package of Cabot’s cheese, urged all Vermonters “to go home and eat two Cabot grilled cheese sandwiches.”

• Another “liberal” politician, Elizabeth Ready, a state senator at the time but later the state’s auditor, had this to say to Food & Water via the media: “Either pack your bags and hit the road or change your tactics.” And, remember, this was when we were simply asking people to “call Cabot” and ask them to stop using rBGH.

• Cabot’s spokesperson at the time, Roberta McDonald, was good for more than a few whacky comments about Food & Water, too. Following the Dean “terrorist” analogy, McDonald compared Food & Water to the Unabomber before declaring that, “locking up the leaders of Food & Water would be a better way to protect the people.” Yikes. I guess we were getting on her nerves, huh?

Funny, though, that we don’t hear the same kind of language now about Wal-Mart. I mean, they simply asked for the same thing Food & Water asked for fifteen years ago: Stop using rBGH. Oh well, I guess it’s all a matter of how you ask….

I’ll be sharing some more stories about the early years of Food & Water now that I’ve jumped down the rabbit hole of opening the old files and bringing the memories bubbling up from yesteryear. They were good times. We were fighting the good fight. We were just a decade and a half ahead of the curve of change.

Go figure.

[You can reach the author at mcolby@broadsides.org]

Gov proposes cutting VT’s effective conservation program completely

( – promoted by odum)

Here we go again… last week the Governor proposed a budget eliminating permanently affordable housing development efforts and completely eliminating conservation investments that boost our working land economy.

The Governor proposes a 70% reduction to the Vermont Housing and Conservation Budget on top of a series of cuts over the past seven years that had already meant a more than $30 million loss.

Let’s not kid ourselves. This is a direct attack on the programs that house Vermont’s workforce, provide the means to save family farms, protect recreation and sensitive natural areas and stimulate the economy.

The governor warned against the drastic wholesale elimination of programs and then proceeded to do just that. He said that it was obvious that we should eliminate our conservation program during difficult economic times.

Every day it seems we are hearing about additional losses of good jobs for Vermonters. In these times we need to look what helps Vermont’s economy grow!

Conservation and affordable housing supporters held a press conference yesterday to respond to the Governor and his proposal. This press conference also marked the official kick-off of Conservation Can’t Wait, our conservation public awareness campaign that includes a new, short video featuring business leaders who explain why conservation is critical for Vermont.

At the Vermont Land Trust website vlt.org you will also see testimonials from those people who have benefited from conservation.

Vermonters strongly believe in protecting our working landscape and yet there has been a gradual erosion or maybe an all out attempt to dismantle the successful conservation program in Vermont. We need to get more creative in Montpelier and figure out how to hold on to our state’s most effective programs while also protecting Vermont most vulnerable citizens! This is possible.  

A thought.

I wonder if I should start blogging in vague, unknowable quatrains that could mean anything. Like Nostradamus did. So everyone can look back in a few months and decide (in whispered awe) that I had mystic insight.

I. The gavel tolls the darkness of the day

Acts 60, 250, and Catamount?

Shumlin and Smith? Or Douglas’s way.

Veto proofing is a sport of the count.


VSAC: Request for audit

(Nate’s back with a bang, and interestingly enough, he’s tackling something that the GMD front pagers have been talking about looking into ourselves in recent weeks. There are a lot of questions worth asking, here, especially given the recent scandals in similar organizations and the rather bizarre accusations in circulation on the web. Nate’s professional, no-nonsense approach is spot-on. – promoted by odum)

UPDATE:  I've posted the budget line items under the category of Other and general administrative expenses online.  The only way I could figure out how upload a PDF file is through Google Docs.  If you don't have a gmail account, all you have to do is set up a free account and log in to make the links below work.  The resolution is good enough to print out.

VSAC documents

…..Cover Letter

…..VSAC Salaries (not including insurances, bonuses, retirement & perks)

Other general and administrative expenses, 

…..Page 1

…..Page 2

…..Page 3

…..Page 4 

 

Auditor of Accounts:

I would like to request a formal, comprehensive audit of the Vermont Student Assistance Corporation. Based on information provided by VSAC, I have found an accounting discrepancy which suggests VSAC under-reported “Other general and administrative expenses” by more than $2.4 million in FY '08 and more than $2.6 million in FY '07.

Page 13 on the FY '08 Annual Report accounts for $10,233,000 in “Other general and administrative expenses, while information provided directly from VSAC provides a total of $12,653,553. The same annual report accounts for $8,788,000 in “Other general and administrative expenses” while data provided by VSAC offers a total of $11,428,035 for the same line item. Over the ten year period of annual reports available on VSAC's web page, “Other general and administrative expenses” has grown at stunning rates from year to year. Several expenses appear significantly excessive. These include:

Combined travel expenses: $663,000 in 2008 
$726,000 in 2007.  

Food Services expenses: $101,371 in 2008 
$86,971 in 2007.  

Consulting expenses: $531,203 in 2008 
$617,079 in 2007.  

Parking fees: $100,616 in 2008 
$97,680 in 2007.
 
Additionally, VSAC reported $60,068,000 in unrestricted assets at the end of FY '08 up from $51,182,000 at the end of FY 2007. Less than half of this amount, about $25 million, was distributed in the form of new loans.
 
(more below the fold) 

It is my concern that a variety of issues beyond the accounting discrepancy should be investigated. These include:
 
1. Lack of transparency. It is difficult to gather comprehensive data from VSAC upon request for information. VSAC's response for total executive compensation was a spreadsheet printout offering salary ranges. Benefits, perks and bonuses were not included. Response to public inquiries includes delays, non-original data and partial answers.
 
2. Corporate largess. As the numbers suggest above, VSAC's budgeting appears grossly excessive. Revenues that may have advanced VSAC's public mission appear to been used for excessive travel, food services, consulting and parking fees. Total executive compensation including bonuses, insurances, retirement benefits, vehicles, etc. should be reviewed. Salaries should also be reviewed. Currenty, VSAC's CEO enjoys an annual salary exceeding $222,000. The four Vice Presidents earn salaries in the range of $157,000 to $173,000.
 
3. Unstable investments in Variable Rate Demand Obligations (VDROs). *See below.

4. Excessively large Unrestricted Net Asset Funds. As of June 30, 2008 VSAC held over $60 million in unrestricted assets. Of this amount only $25 million was reinvested into new student loans. The remaining $35 million should be considered by the governor and lawmakers as an enterprise fund which can and should be transfered into Vermont's general fund. Several states require public lenders to transfer unrestricted profits back to the general fund. ** See below.
 
As public resources diminish due to budget gaps and decreased revenue; as state agencies are being asked to slash budgets and cut government positions, I request a formal, comprehensive audit of VSAC.  I request this audit to reference the question of VSAC's contribution to the public good. Finally, in addition to any unrestricted assets which may be distributed back to the General or Education Funds on a one-time basis, I request a recommendation to require annual distributions from VSAC to the State of Vermont as an enterprise fund generating more revenue than expenses.
 
Thank you for your time in this matter.
 
Nate Freeman

 
* VDROs. The accounting firm, Price Waterhouse Coopers, issued a Higher Education Technical Alert on the subject of VDROs in 2008, warning against over-investment in the Variable Rate Market as non-profits and municipalities nationwide shifted to VRM from the Auction Rate Securities market. Price Waterhouse Coopers warned that too much supply of VDRO's could lead to failed bond sales, causing NPOs and municipalities to draw upon lines of credit established as collateral. VSAC shifted ARS bonds to VDROs with a $230 million line of credit from Key Bank.
 
** Unrestricted Assets. Some states, including Missouri, Kentucky and Pennsylvania, have recently required public non-profit lenders to distribute funds back to state coffers after recognizing evidence of corporate largess along with burgeoning growth in unrestricted net asset funds. The argument is simple: the lender exists for the public good and money is needed elsewhere. In 2007 Missouri enacted a law requiring the Higher Education Loan Authority (MOHELA) to distribute unrestricted assets to the State's General Fund for capital improvement projects at the state's public colleges and universities.  
 

John Updike, 1932-2009

 

 

The image is of a man both curious and intelligent, yet with eyes that betray the sense of humor that was frequently present in his writing.

Sad news comes today, of the death of John Updike, perhaps the greatest American author of the second half of the twentieth century. A true man of letters, Updike's literary output includes not only short stories and novels, but also poetry, essays, criticism, and even sportswriting. He published his first story in the New Yorker in 1954, the year he graduated from Harvard, and published more than a hundred additional stories, essays, articles, and poems there in the next five years. News stories today typically referred to his output as “more than fifty” books: the actual count to date is sixty-one, but I think he has another coming out later this year. He did it the way one must: every day he went to the office and wrote, three pages a day.

I loved his writing. It was in reading Updike that I first saw how writing could be described as “lapidary”: he is second to none as a prose stylist, although in an interview with the Times last fall he said that he didn't think of himself as a stylish writer, just one who wanted to get everything right, so that the reader would see the people and the world he was writing about exactly as he saw it. He could also make you love the unlikable character: I know of at least one person who couldn't bring herself to read the final scene in Rabbit at Rest, in which his greatest character, whom we have known since he was a young, not very good, husband, dies.

I also loved the fact that in his books he included a note about the typeface, Janson, although in his later books, instead of saying that it was set on the Linotype, it was a digitized version.

We still have his writings, and it is part of the measure of his greatness that we can feel that a writer with two Pulitzers and two National Book Awards was underappreciated. It may be that the anti-Americanism bred of Bush's presidency is what deprived him of the Nobel, but this oversight will not diminish the legacy of this great man.